Assume two countries Japan (JPN) and Bangladesh (BAN) produce Computer (C) and Food (F) using two factors, capital (K) and labour (L), which are mobile across sectors. The production of computer is capital intensive and food production is labour intensive. Further, Japan has 120 units of labour and 180 units of capital, while Bangladesh has 100 units of labour and 120 units of capital. The cost of labour is w. The cost of capital is r. Draw a diagram showing the relative demand and the relative supply of computer/food for each country in autarky (approximate positions). I need help to draw the graph as I am really struggling, with what the x and y axis should be labeled and general idea of what it should look like
Assume two countries Japan (JPN) and Bangladesh (BAN) produce Computer (C) and Food (F) using two factors, capital (K) and labour (L), which are mobile across sectors. The production of computer is capital intensive and food production is labour intensive. Further, Japan has 120 units of labour and 180 units of capital, while Bangladesh has 100 units of labour and 120 units of capital. The cost of labour is w. The cost of capital is r. Draw a diagram showing the relative demand and the relative supply of computer/food for each country in autarky (approximate positions). I need help to draw the graph as I am really struggling, with what the x and y axis should be labeled and general idea of what it should look like
Chapter18: International Trade And Finance
Section: Chapter Questions
Problem 2SQ
Related questions
Question
not use ai please don't
Transcribed Image Text:Assume two countries Japan (JPN) and Bangladesh (BAN) produce Computer (C) and Food (F)
using two factors, capital (K) and labour (L), which are mobile across sectors. The production of
computer is capital intensive and food production is labour intensive. Further, Japan has 120 units
of labour and 180 units of capital, while Bangladesh has 100 units of labour and 120 units of capital.
The cost of labour is w. The cost of capital is r.
Draw a diagram showing the relative demand and the relative supply of
computer/food for each country in autarky (approximate positions).
I need help to draw the graph as I am really struggling, with what the x and y axis should be labeled and general idea of
what it should look like
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps with 1 images
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co